Mortgage packages, which combine a mortgage with a credit card and transaction account at the same institution, have become very common in Australia. This report analyzes the ever changing market for mortgage packages in Australia, identifying factors determining growth, and forecasting future developments.

Scope

Draws upon a survey of 2,000 Australians to provide insight into consumer attitudes on mortgage bundles. Analyzes the emergence and growth of mortgage packages, identifying the key drivers of this market. Incorporates interviews with leading mortgage executives in Australia. Covers the major lenders' product offerings.

Highlights

Mortgage packages have gone from being niche products only offered to the top end of the market, to being mainstream products available to most mortgagors. The current proportion of new lending commitments that are attributable to packages are around 50%. From the financial institution's point of view, mortgage packages offer a number of advantages. Mortgage packages can be used to attract new customers, to increase loyalty of current customers, and to increase share of wallet. Different components of the mortgage package play different parts for these strategies. Some observers believe that packages will develop into customizable products suitable for a wide range of niches. For example, a provider might offer a first home buyer's package or a package suitable for elderly customers. However, for this to occur, banks need to collate substantial data about suitable pricing of different package structures.

Reasons to Purchase

Keeps you up-to-date with the dynamic mortgage package market by providing you with in-depth analysis of the major issues. Plan your strategy with confidence using Datamonitor's forecasts of future developments in mortgage packages. Provides in-depth analysis of lenders' products allowing you to reassess your product strategy.